Yesterday’s 2.26% climb in the S&P 500 caught more than a few people off guard but retails continue to remain on the sidelines because they know a sham market when they see one. Like most days when our economic bias is negative, we’ll be looking for forex trading risk negative as our “go” switch. Favored trade (particularly with the near term low in the VIX) is the SPY and DIA puts. If we get a drop in the market gains will be multiplied by the corresponding increase in volatility – practically a given at this point due to the lack of retail participation on the buy side.
For those not able to pick up standard options, binary options are a low capital alternative.
Forex Market Still Not Showing Any Direction
It’s a tough trading session to read today: small fish pro-risk crosses are up yet so is the Yen. Also showing intraday weakness is the CHF, reversing it’s recent strengthening trend. I have to admit I’m stumped today. The good news about being out of the market is the stress level is much less when you don’t trust what you are seeing… which is where I’m standing today.
Anyone got a better read out there? I’m all ears today.
It took all day long for the market charts to start to resemble something even modestly familiar. Showing modestly risk positive at about 3pm, it could be that we’re seeing something of an intervention pattern (though why that would be necessary after such a nice run up is beyond me). Expecting to see a close not far from breakeven on the day for both the S&P 500 and DIA. I had earlier expected a move downward coming but apparently today is not that day. Perhaps tomorrow – because face it, nothing – absolutely nothing – has materially changed since the flash crash May 6th. We have bobbed up and down like the channel bouys off the coast of Maine.
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